Did you know you would have problem before 341

[eddiep]

Just wondering, for those of you who have already filed and had issues:

Just wondering if you knew there would be potiential problems before you even went into the 341 meeting?

Was your lawyer confident that you would be a no asset, ch7 before you filed but the trustee did not see it that way?

[TEW]

I knew that there was one asset I had the trustee may want but turned out he didn't.
I was very close to haveing to much income +$142 $166 being the magic number. the UST could have looked closely and he could have come up with the $ 24 DMI for a chapter 13 for me.
The trustee even asked my lawyer at my 341 meeting if the front office was interested in my case meaning he UST and he wasn't so i sailed through I didn't worry if something was going to happen it was going to happen. I had a very good lawyer.
No problem I could have encountered with my BK was anywhere close to what was happening before I filed. We could not buy food medicine cloths

[NANS2D]

I went into my 341 meeting thinking that I was a no asset case, but at the meeting, the trustee had a question about how I came to the value of my home. Obviously, he wasn't satisfied with my answer and proceeded to declare my case an asset case and said I would hear from his appraiser within the next 30 days.

It's now been more than 30 days, and I have not heard anything from an appraiser, but on Pacer, it says that 2 days after the 341meeting, the trustee sent out a notice of assets and made a request for notice to creditors.

Of course, I am freaking out facing the loss of my home. My questions are 1) is there a timeframe/ deadlines for the trustee to act on establishing a value for my home? Will I get a copy of the appraisal/ time to object? 2) How does he find a buyer and timeframe/ deadlines? 3) I know that equity is based on the mortgage liens at the time of filing, but what happens to the difference between the equity then and the equity that builds up between now and then since I am continuing to pay my mortgages?

I would really appreciate some help understanding this part of the process. On top of the asset status change, the open-ended nature of it is really upsetting and stressful.

[DeadManCrawling]

Nans2d,

It is possible you would lose your home, but I think very unlikely. Everyone knows the real estate market is a deathtrap wheezing its last sputtering breaths before dying.

It may be more likely you have some genuinely exempt assets or funds the trustee would like to get his hands on.

Method? Gee, your home is worth 25k more than you claim. I will sell back the equity for the paltry sum of 5k, have a check in my hands by Friday. Which would tap your exempt asset and possibly force you to try borrowing from friends/family to buy it back.

I could be very wrong, but I have heard of this exact scenario on this board and others.

My heart goes out to you, and I hope you can get this rolling in your favor.

[Manolo]

I went into my 341 meeting thinking that I was a no asset case, but at the meeting, the trustee had a question about how I came to the value of my home. Obviously, he wasn't satisfied with my answer and proceeded to declare my case an asset case and said I would hear from his appraiser within the next 30 days.

It's now been more than 30 days, and I have not heard anything from an appraiser, but on Pacer, it says that 2 days after the 341meeting, the trustee sent out a notice of assets and made a request for notice to creditors.

Of course, I am freaking out facing the loss of my home. My questions are 1) is there a timeframe/ deadlines for the trustee to act on establishing a value for my home? Will I get a copy of the appraisal/ time to object? 2) How does he find a buyer and timeframe/ deadlines? 3) I know that equity is based on the mortgage liens at the time of filing, but what happens to the difference between the equity then and the equity that builds up between now and then since I am continuing to pay my mortgages?

I would really appreciate some help understanding this part of the process. On top of the asset status change, the open-ended nature of it is really upsetting and stressful.

This to is my sole biggest fear. I have a home and have a market analysis but those things are so shady and not really telling. They will ask me how I came up with this value and I will tell them from a market analysis but what may seperate me from others is that I put around 29K as a downpayment on my home in 2002. That is 20% of the purchase price.


Of course the attorney acts like that is no problem because real estate has tanked so much but I can't help but think, he will tell me whatever because I have to pay him upfront, so 2 months after I pay him to file, I can see where all of a sudden, they try to change me to an asset case and screw with my home.

[justbroke]

Of course, I am freaking out facing the loss of my home. My questions are 1) is there a timeframe/ deadlines for the trustee to act on establishing a value for my home? Will I get a copy of the appraisal/ time to object?

Once you're an asset case... time seems to slow down to a crawl. You will receive your discharge (generally) in the standard 60 days post 341 Meeting, but your case close can drag on and on and on.

2) How does he find a buyer and timeframe/ deadlines?

He doesn't. See above! This can take a year to close!

3) I know that equity is based on the mortgage liens at the time of filing, but what happens to the difference between the equity then and the equity that builds up between now and then since I am continuing to pay my mortgages?

What the Trustee would get is the proceeds from the sale whenever it occurred. In this market, I don't see it appreciating, but who knows. It's all at the time of sale anyhow.

At this point, the Trustee is only interested. He's going to determine if there is some equity there that isn't exempt. That's his job. As DMC wrote, if there's very little, he may offer a settlement. Even if he says $5K, you could pay it over time (and your case would not close until it is paid).

[NANS2D]

Thanks to all of you for your help on this issue! Guess I am in limbo for a while. Unless the market changes considerably, I will have no money to buy out the nonexempt equity, so I may be doomed.

If the trustee declares it an asset with equity, should I keep paying the mortgage? Who would have their way - the bank who would want to foreclose ? Or the trustee who would want the equity?